WTI $77.18 -76c, Brent $80.38 -$1.29, Diff $3.20 -53c, NG $4.18 -6c
Another very short blog this morning although there are a lot of results and trading statements out this morning. This means that there are also many meetings and of course it is the Genel Capital Markets presentation this afternoon. A full update on everything tomorrow.
The oil price continues to drift with very little support, Brent December is close to expiry and the API inventory stats last night were better than expected, indeed the analysts got the sign wrong as there was actually a draw of 1.5m barrels against a forecast 800/- build.
Ali-al-Naimi, the Saudi Oil Minister spoke yesterday and the market listened carefully to his words and then did nothing…He said that Saudi Arabia was ‘working with other producers to ensure price stability for the interests of producers, consumers and industry at large’ but then went on to say that they could not and never had been able to set prices, so that’s all that then…
A trading update from Premier this morning and despite headwinds from the oil price all seems to be going according to plan. Development projects at Dua and Naga are under way and Solan commissioning is under way and the Catcher FPSO construction will begin shortly. Sea Lion, in Rockhopper comment also is going ahead which is very comforting. Overall not much to add to my recent comments but with exciting wells to come in Kenya, Norway and the Falklands the outlook is promising despite the oil price.
Much more about Rockhopper after i have seen the company later but the news today on Sea Lion is very positive. With the market uncertain about the possibility about farm-out or even delay the news that Sea Lion is going ahead as a phased, lower cost development is very encouraging. With a farm-out no longer a pre-requisite the development is cheaper and reduces uncertainty with first oil still scheduled for 2019. More later.
Much more tomorrow after the presentations this afternoon but in todays announcement the gas stories doing the rounds have been confirmed. Indeed Genel is buying 36% of Bina Bawi from OMG for $150m tidying it up and making it a much better asset for them. I have always said that the gas element of the Genel portfolio is crucial to my very high valuation and this will to a large degree stamp that so i remain a keen buyer of the stock.
In a very short statement today GKP say that they are on g track to be up to the promised 40/- b/d by the end of this year. If payments are being made as well as told by Genel then things are also surely looking up for GKP, again much more later.
Having flown through the blog and off the TipTV and many meetings there isnt much to add on the sporting front. Andy Murray has a key match tonight with Roger Federer which will be worth watching…